Customization: Ideal Varieties, Product Uniqueness and Price Competition
We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.
|Date of creation:||31 Jan 2009|
|Publication status:||published in Economics Bulletin 2009|
|Contact details of provider:|| Postal: 118 Professional Building, Columbia, MO 65211|
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- Niladri B. Syam & Nanda Kumar, 2006. "On Customized Goods, Standard Goods, and Competition," Marketing Science, INFORMS, vol. 25(5), pages 525-537, September.
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"Customization with Vertically Differentiated Products,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 20(2), pages 475-515, June.
- Oksana Loginova & X. H. Wang, 2009. "Customization with Vertically Differentiated Products," Working Papers 0903, Department of Economics, University of Missouri.
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- Haim Mendelson & Ali K. Parlaktürk, 2008. "Product-Line Competition: Customization vs. Proliferation," Management Science, INFORMS, vol. 54(12), pages 2039-2053, December.
- Bernhardt, Dan & Liu, Qihong & Serfes, Konstantinos, 2007. "Product customization," European Economic Review, Elsevier, vol. 51(6), pages 1396-1422, August.
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